Business
Customer Lifetime Value Calculator
Calculate what a customer is worth across the whole relationship, not just the first sale.
Result
Uses a simple undiscounted model. Money received in five years is worth less than money today, so long-horizon LTV figures should be treated as an upper bound.
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About this calculator
How do I find my real customer lifespan?
Look at customers who first bought five years ago and see how many still appear in your system. That beats an estimate from memory, which is almost always optimistic.
Should I use revenue or profit LTV?
Profit, when comparing against acquisition cost. Revenue LTV makes almost any marketing channel look affordable.
The formula
LTV = average sale × purchase frequency × customer lifespan
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